Well Hothead today revealed that DeathSpank: Thongs of Virtue was actually developed alongside the original game thus leading to a sequel so dam quick. In fact, Thongs of Virtue was finished before the first game was launched.
This means no fan feedback problem fixing.

“By doing two games back to back, we didn’t get the opportunity to listen to everybody’s feedback and try and incorporate that,” Millar said. “But what we did do is take a bit of a guess at what we thought was going to come out of the releases.”

But on the plus side they’re promising that Thongs will be 50% longer than the first and will contain more puzzles and adventure.

As for the setting….
Deathspank will now have guns to play with and rocket launchers as he heads into a WWII style setting, with the announcement screen showing some gun wielding goblin things. Oh, and the North Pole. Don’t forget that.

“DeathSpank 1 was an introduction to the universe for people and it was very much a fantasy action RPG,” Millar said. “For the second game–and this is a reason it was a separate product, too–we just wanted to redefine what that could be. We just wanted to blow people’s expectations out of the water as far as what kind of weapons DeathSpank can have, what worlds he can travel to, and what sort of creatures and characters and enemies he can face.”

It will be released onto Xbox Live Arcade on September 22nd for 1200MSP